Walt Disney set to revamp India operations

Disney has also decided to suspend its Hindi film production business, including media networks, interactives, licensing and merchandising or live eventsGaurav Laghate | ET Bureau | December 23, 2016, 10:05 IST

Image source: http://disneyandmore.blogspot.in/World’s largest media and entertainment conglomerate, The Walt Disney Company, is set to restructure its India operations under new managing director Mahesh Samat, who rejoined the company on October 25, 2016 after a gap of four years.

Under Samat, the company has been working towards the new lean structure, more aligned to the international organisational set-up. Disney India will now focus on its core strengths – Hollywood films and consumer products business.

The Hindi film production business has been suspended after suffering major losses. Already, two top level executivesfrom the India leadership team, Nikhil Gandhi (head of revenue – media networks) and Sameer Ganapathy (head of interactive) have put in their papers. Also, according to multiple sources in the company, Disney India will retrench its workforce and trim it down to 350 people in the next two months, from the current strength of 680 people.

“For some time there were feelers that Disney India is going to cut on employee count. A lot of UTV (which Disney acquired from Ronnie Screwvala) employees are set to lose jobs. Disney will be focussing on Hollywood and consumer products business only,” said a highly placed source in the company, who did not wish to be identified.

Globally, Disney has merged their consumer products business with interactive and is now headed by one person.

“With global change, Disney was bound to merge the consumer products and interactive business in India too. And you can’t have two heads for one business, so Ganpathy decidedto leave,” said another source.

“Media networks business (all TV channels) also had two vice presidents – one for revenue, Gandhi, and one for content, Vijay Subramaniam. Disney was looking to have a single head. This prompted Gandhi to quit,” he added.

Calls and text message sent to Samat did not elicit any response till press time on Thursday, while a spokesperson refused to comment on the development. Gandhi refused to comment, while Ganpathy was not reachable. Disney — the world’s largest media and entertainment company with over $22 billion in annual revenues —has not been able to replicate the same success in India.

ET was first to report that Disney has decided to suspend its Hindi film production business. Its other businesses, be it media networks (Bindass, The Disney Channel, Hungama TV, Bindass Play, UTV Action), interactive, licensing and merchandising or live events, have not given the company a scale that it deserved, feel media observers.